Title
Committee action approving Change Order Number One for a contract with Tyler Technologies, Inc., Duluth, Georgia, decreasing the contract value by $1,079,061.50.
Staff Summary
• At its July 2015 meeting, the Lake County Board authorized a contract with Tyler Technologies (Tyler), in the amount of $2,965,775, for the purchase of software and implementation services for the replacement of the Lake County property tax administration system, with ongoing annual Software as a Service (SaaS) fees estimated at $3,831,085 over five years.
• The Tyler software, identified as the best automated solution and business practice improvement to enhance the operational efficiencies of the offices of County Clerk, Treasurer, and Chief County Assessment, has the following:
o appraisal, review of assessments, tax extension, and tax payments in one central application allowing staff to capitalize on integration opportunities;
o a fully integrated solution with the ESRI GIS datasets; and
o a powerful workflow engine to streamline the County’s business processes for tax assessment, billing, collection, and distribution, thus creating better service for our partner agencies and, ultimately, to the tax payer.
• Delays due to Tyler, the “Go Live” date for the implementation has been pushed back until December 1, 2018, a full year later than the original planned date.
• The primary reason Tyler gave is that the system modifications, many of which were approved by the County last fall, have yet to be scheduled into a development cycle.
• Lake County notified Tyler the delay would result in additional costs to continue the licensing and the maintenance of the existing system and project management costs in an estimated amount $860,000. Staff negotiated with Tyler to offset the costs of the delays.
• Change Order Number One implements a 50 percent discount for the SaaS fees for years three, four, and five - decreasing the overall contract value for ongoing services by $1,079,061.50, contractually obligates Tyler to the revised Go Live date of December 1, 2018 and obligates Tyler to complete the remaining 13 milestones needed for the modifications to implement the system. Tyler is eligible to receive up to $400,000 of the discounted SaaS fees back if they meet all milestones by specific dates outlined in the contract modification.
• In accordance with Article 8, Section 101 (1) of the Lake County Purchasing Ordinance, it is hereby requested that the Purchasing Agent be authorized to enter into Change Order Number One for the Property Tax Administration System.
Body
TO: Chair, Financial and Administrative Committee
FROM: RuthAnne Hall, Purchasing Agent
DATE: November 1, 2107
RE: Change Order Number One - Property Tax Administration System
1. At its July 2015 meeting, the Lake County Board authorized a contract with Tyler Technologies (Tyler), in the amount of $2,965,775, for the purchase of software and implementation services for the replacement of the Lake County property tax administration system, with ongoing annual Software as a Service (SaaS) fees estimated at $3,831,085 over five years.
2. Delays due to Tyler, the Go Live date for the implementation has been pushed back until December 1, 2018, a full year later than the original planned date.
3. The primary reason Tyler gave is that the system modifications, many of which were approved by the County last fall, have yet to be scheduled into a development cycle.
4. Lake County notified Tyler that the delay would result in additional costs to continue the licensing and maintenance of the existing system and project management costs in an estimated amount of $860,000. Staff negotiated with Tyler to offset the costs of the delays.
5. Change Order Number One implements a 50 percent discount for the SaaS fees for years three, four, and five, decreasing the overall contract value for ongoing services by $1,079,061.50, contractually obligates Tyler to the revised Go Live date of December 1, 2018, and obligates Tyler to complete the remaining 13 milestones needed for the modifications to implement the system. Tyler is eligible to receive up to $400,000 of the discounted SaaS fees back if they meet all milestones by specific dates outlined in the contract modification.
6. In accordance with Article 8, Section 101 (1) of the Lake County Purchasing Ordinance, it is hereby requested that the Purchasing Agent be authorized to enter into Change Order Number One for the Property Tax Administration System.